TANFAC Industries stock split and downstream facility expansion plan at Cuddalore

TANFAC Industries Ltd., the joint venture between Anupam Rasayan and TIDCO, has approved a 1:2 stock split and a major capacity expansion, while also planning to raise fresh equity capital. These moves are aimed at improving share liquidity, enlarging investor participation, and supporting downstream fluorinated chemicals growth over the next few years.

Alongside the stock split proposal, the Board has cleared a plan to build a new downstream fluorinated chemicals facility at the existing Cuddalore site, with an installed capacity of 20,000 tonnes per annum. The project will cost about Rs. 495 crore and is scheduled for completion by November 2026, subject to timely clearances and execution.

The company plans to sub-divide each equity share with a face value of Rs. 10 into two equity shares of Rs. 5 each, once shareholders and regulators grant approval. This 1:2 stock split is intended to change only the face value and unit count, while keeping the overall equity capital constant at existing levels.

Before the proposed TANFAC Industries stock split, the authorised equity share capital stands at Rs. 25 crore, represented by 2.5 crore equity shares of Rs. 10 each. After sub-division, the authorised capital will remain Rs. 25 crore, but will be reclassified into 5 crore equity shares of Rs. 5 each, matching the revised face value.

Prior to the TANFAC Industries stock split, the company has 99.75 lakh issued, subscribed and fully paid equity shares of Rs. 10 each, aggregating Rs. 9.975 crore. Post-split, this will convert into 1.995 crore fully paid equity shares of Rs. 5 each, with the total paid-up equity capital unchanged at Rs. 9.975 crore.

The company has stated the reason for the TANFAC Industries stock split as, "To enhance the liquidity of the Company's equity shares and to encourage the participation of small investors by making equity shares of the Company more affordable to invest in the equity shares of the Company," as disclosed in its stock exchange filing to investors.

The preference share capital of TANFAC Industries, which consists of 10 lakh preference shares with a face value of Rs. 100 each, will remain unchanged in both value and structure. This segment of the capital continues at Rs. 10 crore, and is not affected by the proposed stock sub-division of the equity shares.

Parameter	Before TANFAC Industries stock split	After TANFAC Industries stock split
Face value per equity share	Rs. 10	Rs. 5
Authorised equity shares (number)	2.5 crore	5 crore
Authorised equity share capital	Rs. 25 crore	Rs. 25 crore
Paid-up equity shares (number)	99.75 lakh	1.995 crore
Paid-up equity share capital	Rs. 9.975 crore	Rs. 9.975 crore
Preference share capital	10 lakh shares of Rs. 100 each (Rs. 10 crore), unchanged

The new downstream facility linked to the TANFAC Industries stock split strategy will be located within the existing SIPCOT Industrial Estate complex at Cuddalore. It is expected to serve both Indian and overseas customers, adding depth to the company’s downstream fluorinated chemicals portfolio and supporting its long term growth strategy in this segment.

TANFAC Industries has clarified that the new project forms part of its broader downstream expansion roadmap and will be funded through a mix of equity and debt. The facility will be integrated with the current Cuddalore operations, allowing shared infrastructure and operational synergies, as the company scales its fluorinated chemicals capacity.

During the Board meeting on January 9, 2026, which also reviewed the TANFAC Industries stock split proposal, directors approved the downstream project with a total capex estimate of around Rs. 495 crore. The company targets commissioning by November 2026, subject to execution progress and receipt of the required approvals and clearances.

"The investment is intended to support planned expansion into the downstream fluorinated chemicals segment. The proposed facility will be developed at the existing manufacturing location at Cuddalore, enabling operational integration with current infrastructure. The project cost is proposed to be funded through a combination of equity and debt, with commissioning expected by November 2026," said Mr Afzal Malkani, Managing Director.

TANFAC Industries stock split, fund-raising and market view

In addition to the TANFAC Industries stock split and capex plan, the Board has also cleared a proposal to raise up to Rs. 500 crore through equity issuance. The funds may be raised via qualified institutional placement or other permitted equity routes, subject to shareholder consent and necessary regulatory permissions.

Technical sentiment on TANFAC Industries shares remains cautious despite the stock split plan. "Tanfac Industries stock price is bearish with strong resistance at 4740 on the Daily charts. A Daily close below support of 4276 could lead to a target of 3915 in the near term," commented A R Ramachandran, part-time SEBI-registered Research Analyst, Tips2trades.

The process for the TANFAC Industries stock split is expected to conclude within three months from the date of shareholder approval, provided all statutory and regulatory permissions are received in time. The company will fix and disclose the record date for determining eligible shareholders for the subdivision after receiving the necessary approvals.

The views and target levels quoted for TANFAC Industries share performance reflect the opinions of the individual analyst mentioned and not those of Goodreturns.in or Greynium Information Technologies Private Limited. Investors should treat this information as educational, verify details independently with licensed financial advisors, and consider personal risk profiles before taking any investment decisions.